Landlord’s Energy Saving Allowance (LESA) - UK

Posted under General by Michael

Landlords’ Energy saving Allowance (LESA), is a gift to the green landlords. It is a tax break that entitles landlords to claim tax return against the amount spent in purchasing and installing energy saving equipments or items. UK landlords’ representative body, The National Landlords Association (NLA) appealed to the private-residential landlords to take full advantage of this provision.

Insulations help in saving energy. Amount spent on insulations and its installation for loft, floor, cavity wall solid wall and hot water systems will attract tax return up to maximum £1,500 per property. The amount, up to the limit of £1,500, spent on energy saving is deducted from taxable income for computation of tax. If the amount spent is £1,200, saving in tax will be £240 at 20% tax rate and £480 at 40% tax rate.

Effective 1 October 2008, obtaining an Energy Performance Certificate (EPC) for will be mandatory for all rental properties in England and Wales. It will be a useful indicator for the prospective tenants to judge how energy efficient is the property they are looking on to hire on rental.

David Salusbury, Chairman, NLA, expects its members to invest in improving the quality of their properties. He is pleased that Government has offered incentive and urges landlords to take advantage of LESA incentive, or risk losing it in future if they fail to avail the tax break.

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